What Costs Do Sellers Pay in California?

Sellers often underestimate their closing costs in California. Beyond the agent commission, there are escrow fees, title insurance, transfer taxes, and more. Here's a complete breakdown.

By Shasta Greene · April 8, 2026 · 7 min read

Most sellers focus on what they'll net from the sale — but before you can calculate that, you need to understand what you'll pay at closing. In California, seller closing costs typically range from 7%–10% of the sale price, depending on the transaction. Here's where that money goes.

Real Estate Agent Commission

Traditionally, total commission has been 5%–6% of the sale price, split between the listing agent and buyer's agent. This is your largest closing cost. Post-NAR settlement, commissions are increasingly negotiable and explicitly disclosed — your agent should walk you through their compensation structure clearly at the outset.

Escrow Fees

In California, the seller typically pays for owner's title insurance and half of escrow fees. On a $1M transaction, expect escrow fees around $2,000–$3,500 for the seller's portion. Owner's title insurance (which protects the buyer from future title claims) typically costs $1,500–$2,500 depending on the sale price.

Transfer Tax

California counties and some cities charge a Documentary Transfer Tax on all real estate sales. The county rate is $1.10 per $1,000 of sale price. Some cities (including Los Angeles) add their own transfer tax. For Orange County, sellers typically pay the county rate only: $1,100 on a $1M sale.

Other Common Seller Costs

• Natural Hazard Disclosure Report: $100–$150
• HOA transfer fees and resale certificate: $200–$800 depending on HOA
• Pest inspection (if required): $75–$150
• Seller-paid repairs or credits agreed during negotiation
• Home warranty (if offered to buyer): $400–$700
• Pro-rated property taxes through close date

Capital Gains Tax Consideration

If you've lived in your home for 2 of the last 5 years, the IRS allows you to exclude up to $250,000 of gain ($500K for married couples) from capital gains tax under Section 121. California does not conform to this exclusion for state tax purposes — gains above the exclusion are subject to California income tax rates.

Shasta Greene is an Orange County, California real estate advisor and REALTOR®, DRE #02174153.